Unicredit beats forecast with Q1 net profit of 907 million euros

UniCredit continues to trade higher

Unicredit, Italy's biggest bank by assets, posted on Thursday a first-quarter net profit of 907 million euros ($986 million), topping expectations due to rising revenues and lower loan losses as a turnaround under new Chief Executive Jean Pierre Mustier gathered pace.

Net income came in well above an average forecast of 612 million euros in an analyst consensus provided by the bank.

Total revenues of 4.8 billion euros also topped expectations, thanks to higher fees and a sharp increase in trading income. Net interest income fell slightly from a year earlier, but Mustier confirmed a full-year target of 10.2 billion euros.

UniCredit said the ratio measuring its best-quality capital stood at 11.45 percent of assets at the end of March after it raised 13 billion euros in a share issue this year.

Loan writedowns totalled 670 million euros, down 12 percent from a year ago, after a balance-sheet clean-up that led to a 2016 loss of 11.8 billion euros.